Calculating book value per share
Not what you're looking for?
Atlantic Coast Resources Company: Balance Sheet Data December 31, 2010
Accounts payable $ 64,400 Notes payable 71,400 Long- term debt 151,200 Common stock ( 30,000 authorized 20,000 shares outstanding) 364,000 Retained earnings 336,000 Total assets $ 987,000 Total liabilities and equity $ 987,000
Atlantic Coast Resources is concerned about its book value per share, which is computed by dividing the total equity on the balance sheet by the number of outstanding shares of stock.
Suppose the firm sold the remaining authorized shares and netted $ 32.55 per share from the sale. What would be the new book value per share?
Purchase this Solution
Solution Summary
This solution helps calculate the book value per share.
Solution Preview
Dear student,
The solution is provided in a separate excel file attached in the following parts.
1 Computation of total shareholders equity.
(A)Computation of book value per share before the sale of remaining authorized shares:
(B) Computation of Book value per share after the sale of remaining authorized.
Notes:
1 Book value per ...
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Motivation
This tests some key elements of major motivation theories.